Key Points:

• Bitcoin’s price target is aiming for liquidity around $120,000.

• The US PPI inflation has cooled more than anticipated, providing some relief following the previous day’s high CPI figures.

• BTC/USD is avoiding movement toward CME gaps below $115,000.

Bitcoin (BTC) sustained its overnight recovery during the Wall Street Open on Wednesday, supported by US inflation data that seemed to lift Bullish sentiment.

No FED Rate Cuts Expected for July Despite Lower PPI

According to Cointelegraph Markets Pro and TradingView, BTC/USD is trading around $119,000.

The pair showed a daily increase of 0.5%, influenced by positive results from the producer price index (PPI).

“On an unadjusted basis, the index of final demand rose 2.3% over the 12 months ending in June. In June, the final demand services index decreased by 0.1%, mitigated by a 0.3% rise in final demand products,” stated the official press release from the US Bureau of Labor Statistics (BLS).

While the PPI rose by 2.3%, it was still 0.2% below expectations and 0.4% lower than the previous month’s increase.

“Producer inflation appears to have cooled again,” noted a letter from God Besshi, as highlighted in some responses.

This stands in stark contrast to the hot Consumer Price Index (CPI) released the previous day, which saw a year-on-year rise of 2.7%, the highest since February.

Some analysts have suggested that the Federal Reserve might be even less inclined to reduce interest rates. However, others feel that the inflation data don’t support that view, especially considering the ongoing trade tensions.

“Inflation is still quite subdued. Any uptick in the CPI was primarily due to oil prices in June, which should normalize next month,” commented crypto analyst Matthew Highland shortly after the PPI release.

“Like nearly every expert stating this, inflation is not high.”

Recent data from the CME Group shows no indications of a shift in market sentiment regarding potential interest rate cuts during the Fed’s meeting on July 30.

Bitcoin Seeks to Increase Liquidity

In terms of BTC’s price movement, market players are sensing the opportunity for a new liquidity grab.

As Cointelegraph reports, the liquidity on exchange order books has formed price magnets in lower frameworks over the past few months.

Monitoring resources have pointed out that liquidity has shown benefits today, revealing clusters between $119,500 and $120,500.

“It looks like Bitcoin is finding support just above the daily CME gap,” remarked popular trader and analyst Rekt Capital.

Rekt Capital also noted the “gap” created between the close and open levels of the CME Group’s Bitcoin futures market, which lies between $114,300 and $115,600.

This article is not intended as investment advice or recommendations. All trading and investment decisions carry risks, and readers should conduct their own research when making choices.